Companhia Paranaense de Energia Pfd (ELP) AI Stock Analysis

• Market Cap: $6.01B
• Dividend Yield: 6.7%
• Average Volume (3M): 270.13K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.30
• Revenue Growth: -7.02%
• EPS Growth: 17.33%
• Country: US
• Employees: 4,396
• Sector: Utilities
• Sector Strength: 75
• Industry: Diversified Utilities
• EPS (TTM): 0.15
• Shares Outstanding: 335,867,070
• 10 Day Avg. Volume: 398,921
• 30 Day Avg. Volume: 270,128
• PEG Ratio: 2.85
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -56.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.00
• Price Target Upside: 19.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $9.50 ▲(13.91%Upside)

Companhia Paranaense de Energia Pfd scores well due to its strong financial performance, solid dividend yield, and fair valuation. However, technical indicators signal caution with bearish momentum, influencing the overall score.

Positive Factors

Analyst Rating

Analyst reiterates a Buy rating with a price objective of R$12, reflecting confidence in the company's strategic moves and financial outlook.

Asset Rotation

Copel announced a positive asset rotation involving the Baixo Iguaçu Hydropower Plant, which adds approximately 1% NPV to the base-case valuation and could potentially result in additional dividends.

Dividends

Copel announced an additional R$1.3bn dividends related to FY24 results, leading to a 4.3% dividend yield and an 86% total payout FY24.

Negative Factors

Operational Results

Copel reported slightly below estimates 4Q24 operational results with adjusted EBITDA at R$1.3bn, down 13% year-over-year and 5% below BofAe and BBG Consensus.

Companhia Paranaense de Energia Pfd Business Overview & Revenue Model

Company Description

Companhia Paranaense de Energia - COPEL engages in the generation, transformation, distribution, and trading of energy to industrial, residential, commercial, rural, and other customers primarily in the State of Paraná, Brazil. The company operates through Power generation and transmission, Power distribution, Gas, and Power sale segments. It is also involved in the piped natural gas distribution. As of December 31, 2021, the company operated 20 hydroelectric plants, 30 wind plants, and 1 thermoelectric plant with a total installed capacity of 5,957 megawatts; and owned and operated 3,638 km of transmission lines and 204,957 km of distribution lines. It holds concessions to distribute electricity in 394 municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina. Companhia Paranaense de Energia – COPEL was founded in 1954 and is headquartered in Curitiba, Brazil.

How the Company Makes Money

Copel generates revenue through several key streams. The primary source of income is the sale of electricity to residential, commercial, and industrial customers. This includes revenue from both regulated and non-regulated markets. The regulated market consists of sales under predetermined tariffs approved by the regulatory authorities, while the non-regulated market involves negotiated contracts directly with large consumers. Copel also earns income from the transmission of electricity, for which it receives tariffs for the use of its transmission infrastructure. Additionally, the company has investments in telecommunications through its subsidiary Copel Telecom, which provides broadband internet and other telecom services. Strategic partnerships and joint ventures in renewable energy projects also contribute to its earnings, enhancing its capacity and expanding its market reach.

Companhia Paranaense de Energia Pfd Financial Statement Overview

Summary

Companhia Paranaense de Energia Pfd exhibits a strong financial standing with robust profitability. The income statement shows solid operational efficiency with high EBIT and EBITDA margins. The balance sheet is stable with a healthy debt-to-equity ratio and solid equity base. Cash flow management is efficient with positive free cash flow growth.

Income Statement

The company has shown strong financial performance in the TTM (Trailing-Twelve-Months) period. The gross profit margin stands at 20.35%, indicating efficient cost management. The net profit margin is 12.73%, reflecting solid profitability. The revenue growth rate is 2.10% from the previous year, showcasing steady growth. Additionally, the EBIT margin is 31.23%, and the EBITDA margin is 24.48%, both of which are robust, indicating strong operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.73, indicating a balanced use of debt. The return on equity (ROE) is 11.20%, which is healthy, suggesting effective use of shareholders' funds. The equity ratio is 43.61%, showcasing a solid equity base relative to total assets.

Cash Flow

The cash flow statement presents a positive outlook with a free cash flow growth rate of 6.84% over the previous period, highlighting strong cash generation. The operating cash flow to net income ratio is 1.22, and the free cash flow to net income ratio is 1.18, both of which indicate efficient cash flow management and conversion of profits into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.65B	21.48B	20.54B	23.98B	18.63B
Gross Profit	4.07B	4.90B	4.93B	4.27B	4.06B
EBITDA	5.17B	3.96B	3.64B	5.64B	6.61B
Net Income	2.81B	2.26B	1.11B	4.95B	3.90B
Balance Sheet
Total Assets	57.38B	55.82B	49.70B	49.54B	46.78B
Cash, Cash Equivalents and Short-Term Investments	4.16B	5.65B	2.68B	3.49B	3.22B
Total Debt	17.57B	15.23B	12.73B	12.04B	10.08B
Total Liabilities	31.75B	31.63B	28.57B	27.36B	26.53B
Stockholders Equity	25.67B	23.89B	20.82B	21.84B	19.96B
Cash Flow
Free Cash Flow	3.26B	3.30B	3.51B	3.04B	3.77B
Operating Cash Flow	3.39B	3.52B	3.90B	3.39B	4.02B
Investing Cash Flow	-5.74B	-3.14B	-2.77B	31.91M	-1.67B
Financing Cash Flow	803.86M	2.70B	-1.92B	-2.88B	-1.79B

Companhia Paranaense de Energia Pfd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.34
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELP, the sentiment is Negative. The current price of 8.34 is below the 20-day moving average (MA) of 8.62, below the 50-day MA of 8.81, and above the 200-day MA of 7.23, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 26.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELP.

Companhia Paranaense de Energia Pfd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	76 Outperform	$6.09B	4.10	26.38%	2.39%	-4.14%	13.02%
ELP	72 Outperform	$6.01B	11.84	9.22%	6.70%	-7.02%	17.33%
ELPC	71 Outperform	$6.01B	10.78	9.22%	6.89%	-7.02%	17.33%
Sector *	63 Neutral	HK$30.51B	8.82	5.37%	4.23%	-3.09%	4.51%
AES	61 Neutral	$9.62B	7.38	29.79%	5.19%	-3.22%	141.11%
BIP	61 Neutral	$20.61B	2,867.59	0.47%	5.32%	12.40%	-108.27%
HE	52 Neutral	$1.84B	―	-67.93%	―	-7.58%	-819.97%